PERSONAL BUDGET ASSIGNMENT
FINANCIAL LITERACY
Everyday you make financial decisions that determine how much you spend, save and invest. How
good are you at managing your money? How well do you balance your income and spending? Can
you take charge of your own financial affairs, be smart with money, independent and plan for your
future? Answer the 24 questions below and start on the road to financial literacy. While making
decisions about how you spend and save your money stop first and think about how environmentally
responsible lifestyles can contribute to a healthy, and sustainable environment. By making good
decisions you can save yourself money and help the environment. Type your answers in “italic” under
each question. When you have answered all the questions use your answers to prepare a spreadsheet of
your budget showing monthly net income, expenses, and savings. Follow the instructions below and
you will be on your way to being financially independent versus financially dependent.
Readiness
To prepare students for the assignment have students complete the attached crossword puzzle using the
key terms.
Optional - Before your students start this assignment have them go to
http://www.themoneybelt.gc.ca/theCity-laZone/eng/login-eng.aspx
register as a student and enter “The City” website. Have students launch module 04 –
“Income, Expenses & Budget”.
PART 1
Research a careers website like www.careercruising.com and explore “CAREER MATCHMAKER”
and “EXPLORE CAREERS” or check out JobsPeopleDo.com Now choose a career, check out the
starting salary and start the assignment below.
1. What career have you chosen?
2. What is a reasonable starting salary for your preferred profession?
3. Gross monthly income ________________ (divide yearly salary by 12)
4. Net monthly income ________________
You can estimate that about 35% of your gross monthly income will be applied to certain deductions,
such as Income Tax, Canada Pension Plan, Health Insurance, and Employment Insurance. This money
is subtracted from every pay cheque. Example: If your monthly income is $3000 – 35% is $1050,
(3000 * .35 = $1050), so your Net Monthly Income will be 3000-1050 = $1,950.
PART 2
Pretend you have graduated from high school, college or university, have your first real job, and are
living in a rented apartment in the town/city where you work. Prepare a budget for yourself for a fourmonth period. To help you get started, you must first answer the following questions with an
explanation after each.
EXPENSES
1. Saving – always pay yourself first by saving 10% of your net income, this is long term savings that
you force yourself to do by having it automatically deducted from your pay cheque or withdrawn from
your bank account. This money is put into long-term investments, Canada savings bonds, GIC’s,
Financial Literacy Lesson Plan 2012 -Business Studies-Grade 9-10 Introduction To Business BBI10 & BBI20
RRSP’s, RHSP’s, mutual funds, stocks, savings accounts.. Explain what 10% of your net income is
(10% * your net monthly income). Explain where you are going to invest the money each month.
2. Rent - What is your monthly rent for a reasonable apartment or townhouse in your chosen city?
You can assume you are sharing an apartment with a friend or two if you like. Check the classified
section of the newspaper in your city. To do this, go to the website for your city or town.
www.thestar.com www.therecord.com (print the classified ad to include with your assignment handin)
3. Food – Groceries including snacks, plus household cleaning supplies daily average $12.50 to
$15.00 per person. (12.50 X 30 days = $375)
4. Transportation - You must select either the bus or to purchase a car. Depending on the city a bus
pass can cost $80.00 a month. If you are going to purchase a car: What kind of car will you drive?
What is your monthly car loan payment or lease payment? To check out car prices go to the classified
section of a newspaper website or to www.autotrader.ca To check out the monthly payment go to
www.driverlane.com/calculator/calc.asp Car loans or lease arrangements usually are for 3 to 5 years.
5. Automobile costs – Car operation – (gas/oil) $150 to 175 per month.
- Parking costs $30 to $60 per month especially if you live in a big city
6. Car Insurance – females $2000 per year, males $3600 per year (depending on area you live and
driving record)
7. Cellphone – pay as you go $11.00 per month, 3 year contract $45.00 to $90.00 per month, landline
– basic charge - $25.00 per month + long distance
8. T.V. & Internet – basic cable & Internet $35 to $75 per month
9. Credit Cards and Credit Payments – furniture, tech. devices, entertainment – usually $64 to $74 per
month (avoid credit where possible, save for the furniture or buy used). Pay the full amount owing on
credit cards each month. If you can’t afford to pay the purchase off at the end of the month, don’t buy
it. Interest on credit cards that are not paid off at the end of the month is calculated from the day of the
purchase at very high interest rates (22% to 29%).
10. Grooming – haircuts, personal hygiene products, soap, shampoo, dental needs, cosmetics,
medications, $35 to $70 per month
11. Recreation – movies, books, magazines, DVD rentals, concerts, eating out, $50 to $100 per month.
12. Savings – for emergencies, future purchases, and large items $50 to $100 per month.
13. Clothing – boots, shoes, bathing suits, jackets, suits etc. (remember to consider all seasons) $100 to
$150 per month.
14. Insurance – tenant insurance (public liability, property damage and personal property) = $20.00 per
month, (health, dental, term life, sometimes part of your employment benefit package) if not can range
from $100 to $500 per month.
15. Education – night school tuition, books, $50 to $65 per month
16. Sports club membership - $25 to $50 per month
Financial Literacy Lesson Plan 2012 -Business Studies-Grade 9-10 Introduction To Business BBI10 & BBI20
17. Maintenance/Repairs – redecorating, household repairs $15 to $20 per month
18. Gifts – birthdays, Christmas etc. $35 to $50 per month
19. Travel/Vacation – once a year and/or small holidays throughout the year $50 to $85 per month
20. Charity – gifts of money to charitable organizations like world wild life, cancer society, food bank,
church, $15 to $20 per month.
21. Utilities – heat, hydro, water, depends if it is covered in your rent or not, $50 to $100 per month
22. Hobbies – depends what you do, $25 to $50 per month
23. Student loan payment – depends on your post secondary education, apprenticeship, college,
university, $100 to $200 per month
24. Employment expenses - coffee fund at work, work social committee fund, buying your lunch, $10
to $200.00 per month.
Now you can use a spreadsheet to prepare your budget and pie graph.
Once you have completed the budget, reflect on how you are spending your money. You may discover
you are spending more than you are making or have little money left. Look for ways you can save
money. For example you may be spending $10 per day on lunch and coffee, which could equate to
over $2400 a year, consider “brown bagging it” and save that money for a vacation.
Fixed expenses are expenses that don’t generally change from month to month, like rent, most utilities
and car payments.
Variable expenses are expenses that can easily change, like the amount spent on food, entertainment or
clothing.
Total your fixed expenses per month
___________________
Total your variable expenses per month ___________________
You have more control over your variable expenses. Look at all your variable expenses first and see if
you can save some money.
Financial Literacy Lesson Plan 2012 -Business Studies-Grade 9-10 Introduction To Business BBI10 & BBI20
PERSONAL BUDGET PART 3
Write a memo to your parents or (guardian, uncle, aunt, adult – someone you feel has a good
understanding of money issues) and ask them to comment on your personal budget. You want to find
out if the figures you use are reasonable. Use the memo template format that come with the word pro
package.
MEMO
DATE:
TO:
FROM:
SUBJECT:
My Personal Budget
Paragraph 1 – Explain how and why you made the career choice. Explain how you put together your
personal budget. Where the monthly income figure came from and why you think it is reasonable?
Explain some of the decisions you made related to expenses and why. Explain how you are using a
forced saving plan and where you have decided to invest the “me first” money.
Paragraph 2 - Explain ways you are saving money by being a smart and socially responsible consumer.
Explain some things you will do to help yourself financially and at the same time help the environment
(example – ride a bike to work, walk, car pool).
Paragraph 3 - ask your parents to comment in the space you’ve allowed at the bottom of the memo.
Enter several blank lines at the bottom of the memo so your parents can comment and sign.
Print off a copy of the spreadsheet with pie graph and attach it to your memo to your parents.
Create a title page and staple it all together:
Title page
Memo
Personal Budget Spreadsheet with Pie Graph
Take the assignment home and have your parents sign it and then return it to me for marking.
Hand the assignment in to the teacher in this order
1. Title page (name, course, teacher, career choice, image representing the career choice)
2. Memo, signed by parent
3. Personal Budget Spreadsheet with pie graph
4. Question & Answer to the 24 questions
Financial Literacy Lesson Plan 2012 -Business Studies-Grade 9-10 Introduction To Business BBI10 & BBI20
EVALUATION RUBRIC
1
2
3
4
Research
Skills
Thing
Research is not
complete.
Most numbers
are made up.
Research has
some holes and
non-factual
numbers.
Research is
complete, using a
variety of sources,
numbers are
realistic. Came up
with ideas for
environmental
responsibility.
Research is
thorough using a
variety of sources
for each aspect,
numbers are
realistic. Came up
with ideas for
environmental
responsibility.
Spreadsheet
(A)
Spreadsheet
has many
formatting
problems, no
use of
formulas. It is
difficult to
understand, no
pie graph.
Spreadsheet has
some formatting
problems but
you’re learning.
Attempted a pie
graph.
Spreadsheet is
properly formatted
and easy to read
and use, formulas
are used correctly
where necessary,
pie graph used
effectively.
Spreadsheet is
properly formatted
and easy to read
and use, formulas
are used effectively,
pie graph used with
advanced
knowledge.
Knowledge of
content
(K/U)
Demonstrates
limited
understanding
of budgeting
and financial
literacy.
Demonstrates some
understanding of
budgeting and
financial literacy
by the way
questions are
answered and
assignment
completed.
Demonstrates
considerable
understanding of
budgeting and
financial literacy
by the way
questions are
answered and
through completion
of assignment
expectations.
Demonstrates
considerable
understanding of
budgeting and
financial literacy by
the way questions
are answered and
through completion
of assignment
expectations.
Memo
Formatting
Skills
(C)
Memo format
is not used
properly, does
not effectively
communicate
ideas and
information
required.
Memo format is
used,
communicates
ideas and
information with
some
effectiveness.
Memo format is
used correctly with
parent comments
and signature,
communicates
information with
considerable
effectiveness.
Memo format is
used correctly with
parent comments
and signature,
communicates
information with a
high degree of
effectiveness.
Financial Literacy Lesson Plan 2012 -Business Studies-Grade 9-10 Introduction To Business BBI10 & BBI20
Yearly wages:
x
Gross Pay/Month
Net Pay/Month (after taxes)
Expenses
PERSONAL BUDGET
Name: your name here
Date:
Job Title: x
January February March
April
Total
Percent
Savings 10% of net pay
Rent
Food
Transportation
Automobile Costs
Car Loan/Lease Payment
Car Insurance
Car Ex. (gas, oil changes)
Cellphone
TV & Internet
Credit Card Payment
Grooming
Recreation
Emergency Savings
Clothing
Insurance (tenant etc..)
Education
Sports Clubs
Maintenance/Repairs
Gifts
Travel/Vacation
Chairty
Utilities
Hobbies
Student Loan Payment
Employment Expenses
Add another
Add another
TOTAL
Surplus
Deficit
Financial Literacy Lesson Plan 2012 -Business Studies-Grade 9-10 Introduction To Business BBI10 &
BBI20